The specifics of a taxpayer's income, the tax owed on that income, exemptions, and deductions for a given fiscal year are all listed on an income tax return.
BENEFITS :
1. Easy Loan Approval
Many documents are needed by the bank or private lenders in order to process the loan application. The loan application could be for home loans, personal loans for certain obligations, or the purchase of two-wheelers or four-wheelers, among other things.
The ability to repay the loan must be determined before it is approved, and this will be done using your income earnings. Your income tax return serves as evidence of your steady income over the previous periods. This paperwork is required in order to approve a loan.
2. Claim Tax Refund
Your interest on fixed deposits, rental income, consultancy revenue, or salary income may all be subject to tax deduction. There may be situations in which you have no tax responsibility for that year or where the tax that has been deducted (TDS) exceeds the tax owed on your entire income. To get a refund of the TDS in these situations, you have to file an income tax return.
3. Income & Address Proof
You can use your income tax return as evidence of your address and income. Address proofs are needed for Aadhar cards, licenses, passports, and other similar papers.
4. Quick Visa Processing
Most embassies and consultants request copies of your tax returns from the previous two years when you apply for a visa. Since they demonstrate the individual's civic duty, these documents are among the necessary ones. As a result, it is best to file your ITR as soon as possible.
5. For Buying Term Insurance
Insurance companies frequently ask applicants to give their Income Tax Return (ITR) records as evidence of their yearly income in order to accept term insurance plans. The individual's wages determine the coverage amount, and submitting the ITR aids insurance companies in determining the higher income level of the policyholder.
Other Generic Benefits
1.Protection from Black Money:
The government has taken a number of actions in recent years to stop the flow of money out of India and fight black money. The government made it mandatory for taxpayers to disclose foreign assets on their yearly income tax filings in order to achieve this goal.
2.Financial Transparency:
Your ITR provides embassies with a comprehensive picture of your financial soundness by providing a complete analysis of your financial circumstances.
